Looking for best practices when it comes to inputing Paychecks
I see a lot of "paycheck" questions being answered with go to this link for the way to set them up (https://infinitekind.tenderapp.com/kb/archive-entering-transactions/archive-how-do-i-enter-my-paycheck); however, that link takes me to a Login page.
I see "archive" in the link and curious how to get to archived discussions to get a baseline for Paycheck entry.
Also, looking for what people have found for the best way to handle employer matching 401K funds that go directly to an Investment account but have no affect on Gross Pay, and the handling of employer HSA contributions that also go to an Investment account.
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1 Posted by dwg on 07 Aug, 2025 09:32 PM
For some reason they did not update the article on paychecks.
The article is about using a split transaction for a paycheck, most probably setting it up as a reminder. The method to set up a split transaction is documented in:
https://infinitekind.tenderapp.com/kb/register-and-transactions/entering-transactions
The easiest way to handle the funds is probably to Gross up your pay to cover the amount, you are then treating your pay as being as a "Total Renumeration Package" that covers all benefits.
2 Posted by codingcodes on 07 Aug, 2025 10:03 PM
Thanks dwg. I'll play around with it as I am thinking I do not want to plus up my gross pay artificially unless I have a good place to put it to keep my true wages earned accurate.
Probably will test out an Income account named something like EmployerContribution that I can add that plus up to and then draw down as a transfer to the appropriate Investment accounts.
Stopped using MoneyDance a few years ago and just upgraded my 2021 version to see what improvements were made.
3 Posted by -Kevin N. on 07 Aug, 2025 10:29 PM
HI codingcodes,
Here's a link to an older post regarding entering Paychecks. It's essentially split transactions with a reminder thrown in but it's still relevant.
https://infinitekind.zendesk.com/hc/en-us/articles/200975303-Enteri...
I can't speak to the 'match'; I never worked for anyone generous enough to offer one. :(
-Kevin N. (not a member of Moneydance support)
4 Posted by dwg on 07 Aug, 2025 11:19 PM
If you want to keep the Gross Income, then another way of doing it is to use a category to transfer the funds from, so the transfer becomes a category to category transfer.
Categories are not as obvious as an account and a little easier to avoid having them impact other things, for example like net worth. You can embed this transfer in your paycheck split if you wish.
5 Posted by codingcodes on 07 Aug, 2025 11:49 PM
Thank you both. Yes, I meant Category and not Account and will look into embedding as you suggested.
Glad to see the discussion threads are active as I am sure I will have more questions as I dive deeper into MoneyDance again.
6 Posted by sprimost on 08 Aug, 2025 12:04 AM
*From: sprimost (not IK support)*
How I handled it, being the type that balances all accounts to the penny!
What has always worked for me is to enter the gross amount as income and
then apply the deductions, each in its unique categories. This makes it
easier to run the income and expense report at tax time.
For matching funds that go (in the US to a 401(k) that "travels" with
you to another job), I did not include it into the gross amount but
created a separate asset account.and with some companies name, noting
whether the matching fund are "vested" immediately or they become vested
over time. So if you move to another job and take the money with you,
you can adjust the matching funds.
The payroll transaction could have a distinct income source funding the
asset account. That income is not taxable until you retire and do a RMD
(in the US), but interesting to be able to report on that extra income.
7 Posted by codingcodes on 08 Aug, 2025 12:56 AM
That's some good info sprimost.
I have a "demo" file setup just to play around with some options. I have a further split of my contribution goes into a Roth 401k while the employer matching goes into a traditional 401k.
I also have a taxable amount from employer provided group term life insurance that adds to my taxable income, but there is money transaction. I think that is as easy as my gross is split into Salary and another Income category named GTL.
8 Posted by codingcodes on 09 Aug, 2025 01:25 AM
Played with a few different options today and want to thank you all for your input and suggestions.
I created "Employer" Income categories for the employer contribution to 401k and HSA that do not have Salary as the parent as they are not taxed, and created a Group Term Life category under Salary as that is taxed.
Did a few paychecks and 14 splits for a regular paycheck and up to 17 depending on the circumstances.
codingcodes closed this discussion on 09 Aug, 2025 01:25 AM.